Salmon Evolution’s IPO (A): Architecting Brand Growth from Startup to Scaleup

Salmon Evolution, a Norwegian on-land salmon farming company, was established in 2017 with a vision of innovating in the industry to ensure sustainability. Trond Håkon Schaug-Pettersen, transitioning from CFO to CEO in January 2023, played a pivotal role in its capitalization journey from private placements to public markets. Two strategic moves – an IPO in September 2020 on Euronext Growth and subsequent listing on Euronext Oslo Børs in July 2021 – capitalized on its sustainable and technologically advanced hybrid flow-through system (HFS) for salmon production. With growing global demand for Atlantic salmon driven by health and environmental concerns, on-land farming was seen as an innovative solution to the limitations of traditional aquaculture. Salmon Evolution’s strategy was to leverage this rising demand for sustainably produced food and position its salmon as a premium product. The timing of the IPO coincided with a favorable market environment post-COVID, where sustainable business models were highly valued and capital was readily available. This "Green Revolution" and the company's international expansion plans made its investment thesis particularly attractive. The public listing brought prestige and recognition, attracting institutional investors and enhancing its corporate profile. It also spurred the creation of a corporate governance structure in line with Norwegian legislation, fostering long-term value creation and stakeholder trust. As of January 2023, with Schaug-Pettersen at the helm, Salmon Evolution was poised to maximize the benefits of its increased visibility and establish itself as a world-leading standard in Atlantic salmon production.

- Understanding the Strategic Positioning of Startups: To discuss how startups like Salmon Evolution position themselves in a competitive market, particularly in an industry undergoing significant changes due to sustainability concerns. - Analyzing the role of sustainability in business: To examine how Salmon Evolution's commitment to sustainable on-land salmon farming influenced its brand growth and attracted investors, highlighting the increasing importance of environmental, social, and governance (ESG) factors in business. - Discussing brand positioning and premium product strategy: To explore how Salmon Evolution aimed to position its salmon as a premium product, and the factors that contribute to successful brand positioning in the food industry. - Exploring financial strategies for growth: To learn about the different financial strategies employed by Salmon Evolution, including private placements and IPOs, and why they were chosen at various stages of the company's growth. - Examining the IPO process and market timing: To provide insights into the process of going public, the strategic decision-making involved in timing an IPO, and how market conditions can impact its success. - Learning from leadership and management transitions: The case touches on the transition of leadership from CFO to CEO, and the implications of having leaders with strong financial expertise in a capital-intensive business.